Müller, Torsten, (2016), “The king is dead – long live the king: what follows after the Troika?”, Working Paper 2015.09, European Trade Union Institute, Φεβρουάριος. The focus of this paper is the need to reshape the financial assistance programmes and the related activities of the Troika in a way that would make them more socially and democratically acceptable. The starting point, therefore, is an analysis of the current role of the Troika and …Read More

Augustin, Patrick, Boustanifar, Hamid, Breckenfelder, Johannes, Schnitzler, Jan, (2016), “Sovereign to corporate risk spillovers”, Working Paper Series No. 1878, European Central Bank, Ιανουάριος Using the announcement of the first Greek bailout on April 11, 2010, we quantify significant spillover effects from sovereign to corporate credit risk in Europe. A ten percent increase in sovereign credit risk raises corporate credit risk on average by 1.1 percent after the bailout. These effects are more …Read More

Tressel, Thierry, Sophia Zhang, Yuanyan, (2016), “Effectiveness and Channels of Macroprudential Instruments : Lessons from the Euro Area”, IMF Publications, 12 Ιανουαρίου The crisis has highlighted the importance of setting up macro-prudential oversight frameworks, having effective macro-prudential instruments in place to be called upon to mitigate growing financial imbalances as needed. We develop a new approach using the euro area Bank Lending Survey to assess the effectiveness of macro-prudential policies in containing credit …Read More

Angrick, Stefan, (2015), “Global Liquidity and Monetary Policy Autonomy-An Examination of Open-Economy Policy Constraints”, IMK Working Paper 159, 8 Δεκεμβρίου. This paper examines the monetary policy constraints facing economies on a fixed peg or managed float regime, contrasting the Mundell-Fleming Trilemma view against the Compensation view commonly found at central banks. While the former holds that foreign exchange inflows and outflows affect the domestic money base, constraining monetary policy under nonfloating …Read More

Merler, Silvia, (2015), ” Squaring the cycle: capital flows, financial cycles, and macro-prudential policy in the euro area”, Bruegel Publications, Νοέμβριος. The financial crisis has prompted a renewed interest in macro-prudential policy as a framework to address the stability of the financial system as a whole, rather than only its individual components. The purpose of this paper is to contribute to the European macro-prudential discussion by establishing empirically the special challenges that …Read More

Darvas, Zsolt, Leandro, Álvaro, (2015), “The limitations of policy coordination in the euro area under the European Semester”, Bruegel Publications, Issue 19, 12 Νοεμβρίου. This paper assesses economic policy coordination in the euro area under the European Semester. In sections 2 and 3, we make a positive (and not normative) assessment by taking Council recommendations made in the context of the European Semester as given and evaluating their implementation and consistency, without assessing …Read More

Kizys, Renatas,  Paltalidis, Nikos, Vergos, Konstantinos, (2015), “The quest for banking stability in the euro area: The role of government interventions”, Journal of International Financial Markets, Institutions and Money, 25 Σεπτεμβρίου. We build upon a Markov-Switching Bayesian Vector Autoregression (MSBVAR) model to study how the credit default swaps market in the euro area becomes an important chain in the propagation of shocks through the entire financial system. The study sheds light on the regime-dependent interconnectedness between …Read More

Bodea, Cristina, (2015), “Fixed exchange rates with escape clauses: The political determinants of the European Monetary System realignments”, European Journal of Political Economy, Volume 39, Σεπτέμβριος This paper studies the political economy of realignments to fixed exchange rates and suggests that the use of realignments is less likely when there are political benefits from stable exchange rates and when linkages across other issue areas increase the costs of realignment. More …Read More

Kincaida, Russell, Watson, Max, (2015), “Avoiding Another Crisis in the Euro Area: Public and Private Imbalances and National Policy Responses”, Journal of European Integration, 1 Σεπτεμβρίου Early critics of the euro’s design pointed to the disruptive potential — both political and economic — of country-specific shocks in a monetary union that is a far cry from an optimal currency area. The euro crisis has confirmed the risks associated with a …Read More

Thompson, Helen, (2015), “Germany and the Euro-Zone Crisis: The European Reformation of the German Banking Crisis and the Future of the Euro”, New Political Economy, Issue 6, Volume 20, Μάιος Analysis of the German response to the euro crisis has been framed around a narrative of the relationship between domestic sacrifice and hegemony and sustains an assumption that the German commitment to the euro is proven. Such analysis downplays the …Read More